Return to S8-7, the South Mark (SM) investment in CitiSide bonds. Journalize the following on SMs books:

Question:

Return to S8-7, the South Mark (SM) investment in CitiSide bonds. Journalize the following on SM’s books:
a. Purchase of the bond investment on June 30, 2014. SM expects to hold the investment to Receipt of semiannual cash interest on December 31, 2014.
c. Amortization of the premium on the bonds on December 31, 2014. Use the straight-line method.
d. Collection of the investment’s at the date on June 30, 2019. (Assume the receipt of 2019 interest and the amortization of bonds for 2019 have already been recorded, so ignore these entries.)
In S8-7, South Mark (SM) owns vast amounts of corporate bonds. Suppose that on June 30, 2014, SM buys $950,000 of CitiSide bonds at a price of 102. The CitiSide bonds pay cash interest at the annual rate of 7% and mature at the end of five years.

Face Value
Face value is a financial term used to describe the nominal or dollar value of a security, as stated by its issuer. For stocks, the face value is the original cost of the stock, as listed on the certificate. For bonds, it is the amount paid to the... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...